Wall Street ends over 1% higher for second session

US stock indices closed the first session of the week comfortably higher, recouping some of the 5% losses sustained last week in sharp volatility and corrections away from January 26 record highs, as US treasury bond yields surge, while analysts expect the Federal Reserve to hike interest rates next month. 

The White House announced a new budget plan, which includes a 10-year $200 billion plan to improve US infrastructure and $710 billion for defense, $80 billion for tech, and $18 billion for the border wall. 

The White House also released its forecasts for GDP growth, putting it at 3% in 2018,compared to 2.4% before, and 3.2% for 2019, compared to 2.7% before, and finally 3.1% in 2020. 

Consumer prices are expected to rise 2.1% in 2018 and 2% in 2019 and 2.2% in 2020, while unemployment is projected to fall to 3.9% in 2018 and 3.7% in 2019 and 3.8% in 2020. 

Finally, the White House expects 10-year treasury bond yields to average 2.6% in 2018, and for the budget deficit to hit $873 billion this year, before reaching $984 billion in 2019.

Congress reached a last-minute temporary budget deal on Friday after a brief hours-long government shutdown, the second one this year, before both the Senate and House of Representatives passed the deal and President Donald Trump signed it into law. 

Markets await US inflation data later this week, specifically consumer and producer prices in addition to retail sales, industrial, housing, and consumer confidence data. 

Dow Jones surged 1.70%, or 410.37 points to 24,601.27, while Standard and Poor's 500 rallied 1.39%, or 36.45 points to 2,656. NASDAQ Composite rose 1.56%, or 107.47 points to 6,981.96. 

Gold futures due on April 15 rose 0.66% to $1,324.40 an ounce from the opening of $1,315.70, while the dollar index dipped 0.34% to 90.13 from the opening of 90.44. 

US West Texas Intermediate rose 0.24% to $59.34 a barrel from the opening of $59.20, while Brent futures due on April 15 shed 0.18% to $62.68 a barrel from the opening of $62.79.